Glossary · Factoring
Days-to-pay
Also called: DTP, Days to pay, Average days to pay
Definition
Days-to-pay is the average number of days a broker or shipper takes to pay its invoices, a core credit measure factors use to price, limit and monitor debtors.
Factors get days-to-pay from commercial credit services and, more reliably, from their own ledger. Your own data shows what a debtor actually does with invoices you hold, which can differ from what it reports elsewhere or tells a salesperson.
It drives money in two ways. Every extra day ties up capital, and many fee schedules add charges the longer an invoice stays open, so slow debtors raise the carrier's cost and your exposure together. The factoring cost calculator shows how 30 versus 60 days changes the effective rate.
A lengthening trend is an early warning. A broker under strain may slow payments long before anything shows in FMCSA data. Under rules in force since 2026-01-16, once its $75,000 bond or trust is drawn below the minimum and not restored within 7 business days of FMCSA's notice, its authority is suspended.
Sources
- 0149 CFR 387.307: Property broker surety bond or trust fund · eCFR, effective 2026-01-16